Most Americans feel financially literate, but tax confidence and education gaps persist
Most Americans feel financially literate, but tax confidence and education gaps persist
New data from a survey of 1,095 U.S. adults by and TurboTax highlights how many Americans feel they are making informed financial decisions. Here鈥檚 what the data reveals.
- 74% of Americans consider themselves to be financially literate
- 83% said their parents鈥 attitudes toward money and financial tools (e.g., credit cards, saving, and budgeting) influenced how they think about and approach those same topics today
- 52% said they have experienced a setback due to a financial decision they made that was based on incorrect information
鈥淚鈥檝e Got This鈥 鈥 Or Do We?
Nearly three-quarters of Americans (74%) say they consider themselves financially literate, especially when it comes to budgeting, with 64% feeling very or extremely confident managing a budget. But confidence drops sharply with more complex financial topics. 35% of Americans feel only slightly or not at all confident about their investing knowledge, 22% feel slightly or not at all confident about taxes, and 26% feel slightly or not at all confident about loans.
Even though many Americans feel financially literate to an extent, one-third of respondents (67%) admit they鈥檇 be further ahead in life if they were more financially literate. This shows that while many feel confident in their financial knowledge, they still recognize there are gaps that may be holding them back.
The Tax Knowledge Gap Is Real
Taxes are a particular sticking point for Americans. More than half of Americans (55%) say they depend on a parent, accountant or friend to help them file their taxes because they lack the foundational knowledge to do it confidently on their own. Among Gen Z, that number jumps to 72%.
When it comes to understanding the fundamentals, only about half (49%) say they can confidently explain the difference between a tax deduction and a tax credit. Meanwhile, 17% say they aren鈥檛 knowledgeable about any of the major deductions and credits, from the Child Tax Credit to the Earned Income Tax Credit.
Given these gaps, it鈥檚 no surprise that three-quarters (76%) say a required school course on personal tax filing would have been very-to-extremely valuable to their lives today.
When it comes time to file, most Americans turn to online tax preparation software like TurboTax (54%), while 21% use a certified accountant and 19% go with an in-person service. Just 7% still file by hand.
Schools Fall Short on Money
Today鈥檚 financial literacy gap starts in school. Nearly 4 in 10 Americans (39%) don鈥檛 believe school prepared them to manage their finances as an adult.
Here are the financial topics they wish they鈥檇 learned in class:
- 64% investing
- 56% creating a budget
- 50% filing taxes
- 51% credit card basics
- 51% debt management
Parents Shape Money Habits
If school fell short, who filled the gap? For most people, it was family: 61% of Americans say their parents or grandparents had the greatest influence on their financial habits growing up, and 83% say their parents鈥 attitudes toward money still shape how they think about it today.
But influence doesn鈥檛 stop at home. Roughly 1 in 5 (21%) say social media and influencers influenced their financial habits growing up, climbing to 29% among millennials.
The Convenience Trap
One area where the survey reveals a generational divide: the prioritization of convenience over cost. More than half of Americans (53%) agree that when it comes to subscriptions and services (like Netflix or DoorDash), convenience wins over price-consciousness.
But that tendency skews heavily by age. A striking 76% of Millennials agree, compared to just 25% of Boomers. Gen Z clocks in at 58%, suggesting that the 鈥渟ubscribe to everything鈥 mentality may be softening slightly among the youngest adults.
On the flip side, 80% of Americans say they do know exactly how many subscription services they鈥檙e currently paying for, which is a start.
How Emotions Shape Financial Decisions 鈥 and Increase Risk
When it comes to the emotions that influence Americans鈥 financial decisions, confidence tops the list (39%), followed by optimism (20%), with fear not far behind at 14%.
That emotional decision-making can come at a cost. Nearly half of Americans (52%) say they鈥檝e experienced a financial setback due to a decision based on incorrect information.
That vulnerability may also help explain rising concern about financial scams: 40% of Americans say they鈥檙e very or extremely worried about falling victim to one, while another 48% are at least moderately concerned. In an era of increasingly sophisticated fraud, that wariness may be well-founded.
The Bottom Line
Americans are more financially engaged than they sometimes get credit for, but engagement and education aren鈥檛 the same thing. The data suggests a population that is largely winging it, learning from family by default, and quietly wishing someone had given them a proper foundation earlier.
The good news? It鈥檚 never too late. Whether it鈥檚 finally understanding your W-4, getting clear on what deductions you qualify for, or building a budget that actually sticks, one of the most important financial moves is simply deciding to learn and take action.
Methodology
The survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma from March 5 to March 8, 2026, among 1,095 adults ages 18 and older.
was produced by and reviewed and distributed by 爆料TV.
